Real estate tool
Rent vs buy calculator
Compare buying a home vs renting with the down payment invested — see which builds more net worth over your actual time horizon.
Start with the free manual tool. If you want the real document view after that, analyze a statement PDF.
Free tool
Should you actually rent or buy?
Enter all the relevant numbers. The calculator projects net worth under both scenarios and computes the break-even year — the point where buying starts generating more net worth than renting with a disciplined investment alternative.
Time horizon
How long before you'd move. Under 5 years usually favors renting.
Buying scenario
$90,000.
Annual, % of home value. US average ~1.1%.
Annual, % of home value. 1% is standard.
Annual home price growth. 3% US long-term.
Renting scenario
Annual rent increase. 3% is typical US long-term.
Return on invested down payment. 7% for stocks long-term.
Renting with the down payment invested builds $3,396 more net worth than buying.
Home value minus loan balance.
Down + P&I + tax + insurance + upkeep.
Invested down payment + savings vs buying.
Over the full horizon with annual increases.
Break-even: Beyond 40 years. After this many years buying beats renting.
Under 5 years: usually favors renting (transaction costs + early-year interest dominate).
7+ years: usually favors buying in most US markets with standard assumptions.
Natural next step
What does your current housing cost actually look like?
The biggest wildcard is 'monthly rent for equivalent housing.' Looking at your bank statement to see what you're actually paying — plus what a comparable owned property would really cost — makes the comparison honest. Upload yours for spending context.
What it gives you
Fast enough for a first pass
Each tool is intentionally narrow. The job here is a clean estimate, not a fake replacement for a full statement analysis.
Net worth comparison
Compares net worth after N years under both scenarios — not just monthly payment.
Invested alternative included
Models invested down payment + monthly savings vs buying — the fair comparison renters rarely see.
Break-even year
Computes the specific break-even year for your numbers — the point where buying starts winning.
When it's useful
A full net-worth comparison between buying and renting, including invested down payment and every ongoing cost on both sides.
First-time buyers weighing the decision
Runs the full financial comparison with every factor: mortgage, tax, maintenance, appreciation, rent increases, invested down payment. The honest answer for your specific numbers.
Existing owners considering selling
Enter current market value and current rent equivalent to see if hanging onto the home still makes sense for your specific horizon.
People relocating for a job
If you'll be in the new city 3 years, the answer is almost certainly rent. The calculator makes the break-even year concrete for your specific situation.
Couples planning long-term
The financial math is only one factor. But having a concrete break-even year helps separate the 'it's an investment' arguments from the lifestyle ones.
Deeper context
Why the 5-7 year rule of thumb exists
Transaction costs dominate early years.
Closing costs alone are 2-5% of purchase price
On a $450k home that's $9k-23k out of pocket — money lost forever regardless of appreciation.
Selling costs add another 5-7%
Realtor commission (~5-6%) + title + prep + inspections. That's another $22k-32k on a $450k home you eventually sell.
Early mortgage payments are mostly interest
On a 30-year 7% mortgage, years 1-5 payments are 80-90% interest. You build almost no equity early, so there's nothing to offset the transaction costs.
Deeper context
Local market factors the calculator can't model
Three things that make real rent-vs-buy decisions harder than pure math.
Rent control
Rent-controlled apartments change the math dramatically — annual rent increases of 2% in a rent-controlled unit beat 3-4% market increases over 10 years. Only model actual legal increases you'll experience.
Housing supply shocks
3% appreciation is the long-term average, but certain areas (Austin, Miami, Phoenix) saw 15-30% appreciation in some recent years. If you buy near market peak, the comparison might look dramatically different than the default.
Maintenance variance
1% annual maintenance is the US rule of thumb, but older homes, condos with HOA special assessments, or homes with deferred maintenance can run 2-4%. Sandbagging this input shifts the answer toward renting.
FAQ